DVR 0.00% $1.15 diverger limited

Ann: COG: Withdrawal of Diverger(ASX DVR) Non-Binding Indicative, page-11

ANNOUNCEMENT SPONSORED BY PLUS500
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM
CFD Service. Your Capital is at risk
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
  1. 58 Posts.
    lightbulb Created with Sketch. 10
    A couple of thoughts

    1) there is a binding SID with Diverger and Count - which means (subject to terms) that Count can't/won't pull out (in the absence of term breakage, usually a Board Recommended Superior Offer). It is very unusual for a binding SID not to proceed.https://hotcopper.com.au/data/attachments/5737/5737204-c62c3c6038e6a2f4c143be33029591eb.jpg
    The 22nd Sept release states that HUB24 (in the absence of a superior proposal) are supportive of this proposal. They have 34.38% +/- 1%

    Either there is a Board agreed Superior Proposal (terms will need to be light (not just price heavy) to compete against this one).

    On the basis that HUB votes Yes (34%) - and lets say they do - and (say) 65% of Register Votes, with Donkey votes getting the Yes to 50% the No Case would need (65%*25%=16.25% of the register to vote against). It is likely that the company may be obliged to shuffle up proxies to get yes to 55% (likely a "do all things to get deal over the line" clause) which may mean No vote needs 17% plus. - Hard to see happening (in the absence of a Superior Proposal).

    Finally it seems to me that COG remain interested from their wording - but their indicative offer was (not unusual) Terms Heavy - especially around DD and Conduct - so very difficult for Board to recommend against an existing SID (a bird in the hand strategy). Remember HUB can't search for another bidder or engage - they have a SID - they need to actually get a Superior Proposal to do so.

    Next Steps - CUP continues to SID with DVR or COG returns with a proposal that is capable (and then deemed to be Superior). Likely best done through mirroring CUP SID with higher price (i.e. move to Binding and no DD) - that is why the stock is trading between CUP and COG offers - who will blink. Seems to me all are playing their chess pieces very normally.

    Lots of room between value (of Count Offer (100% Scrip Count at $0.655 x 2.07 = $1.355) and today's price (subject to Share Consideration Cap p19 of SID - with cash lower realised more like $1.26??)


 
watchlist Created with Sketch. Add DVR (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.